vii TABLE OF CONTENTS CHAPTER 1 TITLE PAGE DECLARATION ii DEDICATION iii ACKNOWLEDGEMENT iv ABSTRACT v ABSTRAK vi TABLE OF CONTENTS vii LIST OF TABLES xi LIST OF FIGURES xiii LIST OF TERMINOLOGY xv LIST OF APPENDICES xvi INTRODUCTION 1 1.1 Introduction 1 1.1.1 Global Context of Creativity and Innovation 5 1.1.2 A Malaysian Context of Creativity and Innovation 9 1.2 Statement of the Problems 11 1.3 Research Questions 14 1.4 Purposes of the Research 14 1.5 Objectives of the Research 15 1.6 Scope of the Research 15 1.7 Limitations of the Research 17 1.8 Significant of the Research 18 1.8.1 Academic Literature 18 1.8.2 Manufacturing Companies 19 1.9 Structure of the Research 19 1.10 Conclusion 21 viii 2 LITERATURE REVIEW 22 2.1 Overview 22 2.2 Creative and Innovative Organizations 22 2.2.1 Innovation in Manufacturing Companies 25 2.2.2 Creativity and Innovation in Malaysia’s Manufacturing Companies 2.3 The Differences of Creativity and Innovation 31 2.4 Creativity 33 2.4.1 Factors Enhancing Creativity 34 2.4.2 Creativity Process 42 2.4.3 Types of Creativity 44 2.5 Innovation 46 2.51 Factors Enhancing Innovation 49 2.5.2 Innovation Process 50 2.5.3 Types of Innovation 52 2.6 Profitable Growth 55 2.7 Innovation and Profitable Growth 55 2.7.1 Measuring Profitable Growth 59 2.8 3 28 The Factors Moderates Innovation Leads to Profitable Growth 62 2.9 The Reasons of Creativity and Innovation 64 2.10 Obstacles of Creativity and Innovation 65 2.11 Theoretical Framework of the Research 67 2.12 Conclusion 70 RESEARCH METHODOLOGY 71 3.1 Overview 71 3.2 Research Design 71 3.3 Sampling Design 72 3.3.1 Population and sample of the Research 73 Data Collection 74 3.4.1 Primary Data 74 3.4.1.1 Questionnaire 74 3.4.1.2 Questionnaire Design 75 3.4.1.3 Scale of Measurement 78 3.4 ix 3.4.2 79 3.5 Research Hypothesis 79 3.6 Procedure of Data Analysis 80 3.6.1 Descriptive and Inferential Analysis 81 3.6.2 Hypothesis Testing 82 3.6.2.1 Linear Regression 82 3.6.2.2 Hierarchical Multiple Regression 82 3.7 Normality Test 83 3.8 Empirical Data Analysis 84 3.8.1 Reliability Data Analysis 84 3.8.2 Validity Data Analysis 85 3.9 3.10 4 Secondary Data Pilot Study 86 3.9.1 Participants 87 3.9.2 Materials and Procedures 87 3.9.3 Result of Pilot Study 88 Conclusion 88 FINDINGS AND DATA ANALYSIS 89 4.1 Introduction 89 4.2 Survey Response 89 4.3 The Assessment of Normality for Variables 90 4.4 Demographics of Respondents 93 4.4.1 Analysis on Gender of Respondents 93 4.4.2 Analysis on Age of Respondents 94 4.4.3 Analysis on Respondents’ Level of Education 94 4.4.4 Analysis on Job Position of Respondents 95 4.4.5 Analysis of Number of Years with Current Company 4.5 4.6 96 Statistical Analysis 96 4.5.1 Research Question 1 (RQ1) 97 4.5.2 Research Question 2 (RQ2) 102 4.5.3 Research Question 3 (RQ3) 103 Conclusion 107 x 5 DISCUSSION AND RECOMMENDATION 108 5.1 Introduction 108 5.2 Discussion on Findings 108 5.2.1 Discussion for Research Question 1 (RQ1) 110 5.2.2 Discussion for Research Question 2 (RQ2) 112 5.2.3 Discussion for Research Question 3 (RQ3) 113 5.3 Limitations 114 5.4 Recommendation 115 5.4.1 Recommendation for Manufacturing Companies, Iskandar Malaysia 5.5 115 5.4.2 Recommendation for Future Researcher 116 Conclusion 117 REFERENCES 119 Appendix A-B 148-154 xi LIST OF TABLES TABLE NO. TITLE PAGE 1.1 Factor-Driven to Competitive Development 5 1.2 Real GDP Growth by Sector in Malaysia 10 2.1 The Differences of Creativity and Innovation 32 2.2 KEYS Instrument Factors 35 2.3 Description of Organizational Creativity Factors 36 2.4 The Summary of Previous Researches on Creativity Factors 39 2.5 Previous Model of Creativity Process 42 2.6 Definitions of Creativity Types 45 2.7 Doblin’s Framework, Types of Innovation 53 2.8 Examples of Innovations Types in Doblin’s Framework 54 2.9 Summary of Previous Researches on Innovation and Organizational Performance 2.10 57 Innovation Performance in 1993 and 2003 Of Eleven Nordic Companies 66 3.1 Summary of Tabulate Question and Scale 75 3.2 Factors of Creativity Used in Previous Researches 76 3.3 Summary of Profitable Growth’s Factors by Previous Researchers 77 3.4 Likert Scale Measurement 79 3.5 Analysis Methods to Conduct Research Objectives 81 3.6 Value Ranges of Cronbach’s Alpha 85 3.7 Reliability Statistics of Pilot Study 88 4.1 Summary of Responses from the Questionnaires Survey 90 4.2 The Assessment of Normality for Each Variable 91 xii 4.3 Rules of Thumb about Cronbach’s Alpha Coefficient Size 92 4.4 Reliability Analysis for Variables Measures 92 4.5 Model Summary for Organizational Encouragement 97 4.6 Coefficients for Organizational Encouragement 98 4.7 Model Summary for Supervisory Encouragement 98 4.8 Coefficients for Supervisory Encouragement 99 4.9 Model Summary for Freedom 99 4.10 Coefficients for Freedom 99 4.11 Model Summary for Challenging Work 100 4.12 Coefficients for Challenging Work 100 4.13 Model Summary for Resources 100 4.14 Coefficients for Resources 101 4.15 Model Summary for Work Group Support 101 4.16 Coefficients for Work Group Support 101 4.17 Model Summary for Profitable Growth 103 4.18 Coefficients for Profitable Growth 103 4.19 Model Summary for Environmental Aspects (Dynamism) 104 4.20 Coefficients for Environmental Aspects (Dynamism) 104 4.21 Model Summary for Environmental Aspects (Competitiveness) 105 4.22 Coefficients for Environmental Aspects (Competitiveness) 106 5.1 Summary of Overall Findings 109 xiii LIST OF FIGURES FIGURE NO. TITLE 1.1 Three Components of Creativity 1.2 Porter’s Four-Phase Model of National Competitive Development 1.3 PAGE 2 4 PCT Patent Applications with Co-Inventors Located Abroad 8 1.4 Industry Clusters of Iskandar Malaysia 16 1.5 Cumulative Committed Investment (RM billion) in Iskandar Malaysia (till end 2010) 17 1.6 Structure of the Research 20 2.1 The Historical Evolutionary Plots 24 2.2 Innovation Activities by Broad Industry Group, 2002-2004 2.3 Innovation Outputs by Broad Industry Group, 2002-2004 2.4 26 27 Innovation Impacts by Broad Industry Group, 2002-2004 27 2.5 Evolution of Electronics Industry in Malaysia 30 2.6 The Directed Creativity Cycle 43 2.7 The Matrix Model of Creativity Types 46 2.8 The Steps to Adopting Innovation 48 2.9 Innovation Process 50 2.10 Stage-Gate Product Innovation Process 51 2.11 An Innovation Process Management Diagram 52 2.12 Research Framework for Creativity and Innovation for Profitable Growth 69 xiv 3.1 Questionnaire Design 77 4.1 Percentage of Respondents’ Gender 93 4.2 Percentage of Respondents’ Age 94 4.3 Percentage of Respondents’ Level of Education 95 4.4 Percentage of Respondents’ Job Position 95 4.5 Number of Years with Current Company 96 xv LIST OF TERMINOLOGY GDP - Gross Domestic Product R&D - Research and Development EU - European Union OECD - Organization for Economic Cooperation and Development IPR - Intellectual Property Right PCT - Patent Cooperation Treaty MDI - Malaysia Design Innovation Centre GERD - Gross Expenditure Resource and Development IM - Iskandar Malaysia SJER - South Johor Economic Region IDR - Iskandar Development Region MNCs - Multinational Companies Enterprise SMEs - Small and Medium PMSI - Programme Medicalization System Information AAGR - Average Annual Growth Rate E&E - Electrical and Electronics IRDA - Iskandar Regional Development Authority DCP - Comprehensive Development Plan SPSS - Statistical Package for Social Science ANOVA - Analysis of Variance ANCOVA - Analysis of Covariance STV - Subjects to Variables xvi LIST OF APPENDICES APPENDIX TITLE PAGE A Questionnaire 148 B Sample Size Table of Population 153